Find closest multiple of $46$ to $161$. We see that $3 \times 46 = 138$ is the nearest. Now subtract $138$ from $161$ to get reminder $23$. Add $3$ to quotient.
Since $23$ is less than $46$, stop the division. The reminder is $23$. The topmost line $003$ is the quotient. Remove all zeros at the start of the quotient to get the actual quotient $3$.